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The accounting staff of Lambert Company has assembled the following information for the year ended December 31 of the current year.
| | | | |
| Cash sales | $ | 731,000 | |
| Credit sales | | 2,500,000 | |
| Collections on accounts receivable | | 2,205,000 | |
| Cash transferred from the money market fund to the general bank account | | 250,000 | |
| Interest and dividends received | | 100,000 | |
| Purchases (all on account) | | 1,800,000 | |
| Payments on accounts payable to merchandise suppliers | | 1,480,000 | |
| Cash payments for operating expenses (including payroll) | | 1,055,000 | |
| Interest paid | | 180,000 | |
| Income taxes paid | | 95,000 | |
| Loans made to borrowers | | 500,000 | |
| Collections on loans (excluding receipts of interest) | | 260,000 | |
| Cash paid to acquire plant assets | | 3,100,000 | |
| Book value of plant assets sold | | 659,200 | |
| Loss on sales of plant assets | | 75,200 | |
| Proceeds from issuing bonds payable | | 2,500,000 | |
| Dividends paid | | 120,000 | |
| Cash and cash equivalents, Jan. 1 | | 512,000 | |
| |
Required:
a. Prepare a statement of cash flows. Use the direct method of reporting cash flows from operating activities.
b-1. Compute the amount of collections from customers.
b-2. Compute the amount of cash paid to suppliers and employees.
b-3. Compute the amount of proceeds from sales of plant assets.
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